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| Sky Park, Singapore |
Killing it's low taxes kill its advantage. Hong Kong may take it. As Singapore imports more of the funds from the west, it unfortunately has imported the expensive, misguided public social programs as well.
Singapore taxes 'need to rise' - Telegraph
Singpore's prime minister says that the city-state's famously low taxes cannot last forever.
by Justin Harper 06 Sep 2012
Singapore’s allure as a low tax environment could be under pressure after its prime minister said taxes would need to rise.
Like many south-east Asian countries, Singapore is struggling with a rapidly ageing population. This is shrinking the workforce, creating a demand for expats to relocate to the city state.
But it is also creating a tax burden, with a growing need to provide health care and social housing for elderly citizens which will have to be met by the working population.
Along with a safe, child-friendly environment Singapore also enjoys low personal tax rates. Only 20 per cent tax is charged at the highest rate, compared to 50 per cent in the UK.
But in a recent speech Prime Minister Lee Hsien Long said: “As our social spending increases significantly, sooner or later, our taxes must go up. Not immediately, but if we are talking about 20 years, certainly within that 20 years, whoever is the government will at some point have to raise taxes because the spending will have to be done.”
